New Delhi, May 6: India’s unincorporated non-agricultural sector is witnessing strong momentum, emerging as a key driver of economic growth, employment generation and digital transformation, according to the latest findings released by the Ministry of Statistics and Programme Implementation (MoSPI).
The sector now comprises 7.92 crore enterprises, marking a 7.97% increase compared to the previous survey period. This expansion underscores the resilience and scalability of India’s informal economy, which continues to complement the formal sector while supporting millions of livelihoods.
Growth Across Key Economic Indicators
The latest Annual Survey of Unincorporated Sector Enterprises (ASUSE 2025) highlights broad-based growth across all major metrics:
- Gross Value Added (GVA) rose 10.87%, indicating strong economic output
- Employment increased by 6.18%, reaching 12.81 crore workers
- Growth was driven by sustained activity in trade, manufacturing and services sectors
Notably, the trade sector led GVA growth with a 16.77% increase, followed by manufacturing and other services, reflecting strong domestic demand and steady industrial activity.
Women Entrepreneurs Driving Manufacturing Growth
A significant structural shift is visible in gender participation. Over 60% of manufacturing establishments are now led by women entrepreneurs, highlighting increasing inclusivity and grassroots entrepreneurship.
Women account for nearly 29% of the total workforce, with a large share engaged in sectors such as apparel manufacturing. The data also indicates a gradual rise in women-owned enterprises, reflecting improved access to opportunities and financing.
Digital Adoption Gains Momentum
Digital transformation is accelerating within the informal sector:
- More than 50% of trading businesses are using the internet for operations
- Overall internet usage for business purposes rose sharply to 39.37%, up from 26.68% in the previous survey
- Rural adoption nearly doubled, signalling deeper digital penetration beyond urban centres
This shift indicates growing reliance on digital tools for commerce, payments and customer engagement, positioning small businesses for greater efficiency and market access.
